Navigating the Feasibility of Subscription Model in India's Food Industry
Navigating the Feasibility of Subscription Model in India's Food Industry

The subscription model has emerged as a prevalent and well-received format within the food-tech and e-commerce industries in India, encompassing both start-ups and established players. This phenomenon has extended to the F&B industry, with numerous food-tech companies and restaurants embracing subscription-based models. 

While some companies focus on home-cooked meals, others prioritize healthy diet management. The demand for subscription-based models has experienced substantial growth, particularly with the rise of aggregators witnessing significant user numbers, and the prominence of third-party delivery companies like Dunzo.

As per the data by Apollo Research, the Indian healthy meal subscription market value was estimated at $3,732.8 million in the year 2022 and is projected to reach around $13,757.7 million by 2032 with a CAGR of 14 percent. In India, it projected a great potential for meal subscription start-ups given that only 25 such companies have been established.

Within the F&B industry in India, the subscription model offers a unique and convenient approach to food services, attracting a diverse range of consumers. Leading food delivery platforms such as Zomato Gold and Swiggy Super have introduced subscription programs that provide users with benefits including complimentary deliveries, exclusive discounts, and access to special events. By subscribing to these services, customers can enjoy noteworthy savings on their food orders while elevating their dining experiences. 

Sprink’s co-founder, Kumar Setu, believes that meal subscriptions are mainly proposed for individuals who want to save time when it comes to cooking. “Cost-effectiveness is an essential feature for the target customers of this service. Meal subscription platforms primarily target transient population and young professionals who make at least INR 30,000 per month,” he added. Sprink is currently catering to 10,000 meals a day in Bangalore and planning to expand its operations to other cities. 

Additionally, meal kit subscription services like FreshMenu, InnerChef, and Box8 have gained considerable popularity. These services deliver pre-portioned ingredients and recipes directly to customers' doorsteps, allowing them to prepare restaurant-quality meals in the comfort of their homes. The adoption of such subscription-based models within the F&B industry not only offers convenience, variety, and cost-effectiveness for consumers but also enables businesses to foster customer loyalty and cultivate recurring revenue streams.

The popularity of the subscription model can be attributed to various factors. Firstly, it offers convenience to customers by enabling them to pre-order meals or food items for regular delivery. This aspect proves particularly beneficial for busy professionals and students who lack the time to cook or shop for groceries. Additionally, subscription models tend to be more affordable compared to ordering food on a per-meal basis, as subscribing to a plan often entails discounts. Moreover, these models provide customers with a wide range of meal options to accommodate diverse dietary needs and preferences.

While the subscription model in the food industry in India has gained traction, it has faced challenges in becoming a consistently profitable business. Vaibbhav Arora after working with Zomato decided to bridge the gap by launching BhojanTech that offer meals under 100. The B2C offering included seven-day, 14-day and one-month subscriptions for different meal options. While the company gained traction in the initial days during pandemic, it is currently temporary closed with now news of reopening anytime soon. According to Arora, the market is not huge for subscription based food delivery apps in India. He feels that the model is not feasible if one is operating with only few number of subscribers. 

One of the primary challenges for subscription-based food businesses is customer churn. Subscribers may cancel their subscriptions after a short period due to various reasons such as dissatisfaction with food quality, limited menu options, or changes in personal preferences. Maintaining a steady subscriber base becomes crucial to sustain profitability.

Implementing and maintaining a subscription model can be costly for food businesses. They need to invest in technology infrastructure, logistics, and customer support to effectively manage subscriptions. Additionally, offering exclusive discounts and benefits to subscribers can impact profit margins.

The competitive landscape and market dynamics in the food industry can result in thin profit margins. Offering discounted prices to attract subscribers while covering operational costs can be challenging, especially for small and medium-sized businesses.

Subscription-based food businesses often face significant overhead expenses related to food procurement, storage, preparation, and delivery. These expenses can erode profitability if not carefully managed, particularly as the volume of subscriptions increases. “If you still see many subscription based food apps in India operating in India that is because many are still running with investors’ money rather than own profit. Not even 5 percent of total such companies have reached break-even,” Abhishek Tyagi, founder od Absolute Food Consultants informed. 

The target customer base for subscription-based food services may be relatively small, primarily comprising urban consumers, students, or office-goers. Expanding the customer base beyond these segments can be a challenge and may require additional marketing and promotional efforts.

The food industry in India is highly competitive, with a plethora of options available to consumers. The presence of multiple players, both subscription-based and traditional, makes it challenging to attract and retain customers in a crowded market.

The demand for food can be subject to seasonality and fluctuations, affecting subscription-based businesses. Managing inventory, maintaining quality, and meeting customer expectations during peak and low-demand periods can impact profitability.

Food businesses operating on a subscription model need to comply with various regulatory requirements related to food safety, hygiene, licensing, and delivery. Adhering to these regulations can add complexity and cost to the business operations.

The subscription model in the food industry has undoubtedly made its mark in India, offering convenience, cost-effectiveness, and a diverse range of options for consumers. However, achieving profitability in this model remains a complex challenge. The key lies in focusing on customer retention, delivering exceptional quality and service, optimizing operational efficiency, and continuously adapting to evolving customer preferences. Despite the obstacles, the subscription model holds immense potential for growth and success in India's dynamic food industry. As businesses navigate the path to profitability, those that can effectively address the challenges and consistently deliver value to their subscribers will be well-positioned to thrive in this evolving landscape.
 

 
Stay on top – Get the daily news from Indian Retailer in your inbox
Beyond the Kitchen: 5 Essential Qualities Required to Start a Food Business
Beyond the Kitchen: 5 Essential Qualities Required to Start a Food Business
 

The world of food has always been more than just sustenance. I have seen it evolve, adapting to changing times—an unfolding narrative of cultures, ambitions, and human connection. As the landscape of dining transforms, from bustling market stalls to opulent hotel dining rooms and the invisible networks of cloud kitchens, one truth remains: food is never just food. It is an experience, a memory, a moment shared.

Over the years, I have watched those who dare to venture into this space begin with a singular focus—the quality of what is placed on the plate. But time has a way of revealing deeper truths. Success is not just about recipes or ingredients; it is woven into something more intangible. It lies in the precision of execution, the warmth of service, the courage to innovate, and the resilience to withstand storms.

Whether in the grand corridors of luxury hotels, the intimate corners of world-class restaurants, or the unseen yet powerful networks of cloud kitchens, I have come to recognize that the true architects of food businesses build on these unseen foundations. Here are five essential qualities that, time and again, I have seen shape the most remarkable food ventures—stories from India and across the globe.

It’s about Detailing

Excellence in the food business is often found in the details. From the crispness of a linen napkin to the precise plating of a dish, every tiny element contributes to the guest experience. A lack of attention to detail can mean the difference between a memorable meal and an average one. In high-end restaurants and hospitality chains, precision is not just preferred—it’s a non-negotiable standard.

Attention to detail in food businesses isn’t about perfection for the sake of perfection; it’s about making every customer feel valued. It signals a deep respect for the craft, a commitment to quality, and an unyielding desire to offer nothing but the best. When a restaurant or cloud kitchen masters the small things, it builds an invisible thread of trust with its patrons—one that turns a single visit into a lifelong relationship.

Service at the Top

The food industry, at its core, is a service-driven business. The intent to serve must go beyond transactions—it should be about making people feel welcomed, comforted, and cared for. The best food businesses don’t just focus on feeding people; they focus on nurturing them.

Eleven Madison Park, one of the most celebrated restaurants in the world, has redefined hospitality through a philosophy of deep personalization and generosity. Under the leadership of Chef Daniel Humm, the restaurant doesn’t just provide a fine dining experience—it creates moments that leave an indelible mark on guests. The team at Eleven Madison Park goes to great lengths to make every diner feel special, whether it’s crafting a dish inspired by a guest’s childhood memory or sending them home with a carefully selected parting gift that resonates with their experience.

Experience Drive Success

A food business with a strong intent to serve naturally creates an atmosphere of warmth and loyalty. Whether it’s a Michelin-starred fine dining establishment or a small cloud kitchen, the way customers feel about their experience will define its long-term success.

Innovation doesn’t always mean reinventing the wheel; sometimes, it’s about recognizing opportunities that others overlook. Whether through menu engineering, technology integration, or unique branding, an innovative mindset ensures that a food business stays relevant and competitive. El Bulli proved that the most groundbreaking ideas often come from a willingness to question everything—and that true innovation is about challenging the status quo.

El Bulli, the legendary restaurant led by Chef Ferran Adrià, revolutionized modern gastronomy through relentless innovation. More than just a restaurant, El Bulli became a laboratory of culinary experimentation, redefining what food could be. Adrià and his team closed the restaurant for six months each year to focus solely on research and development, pushing the boundaries of taste, texture, and presentation.

Resilience is Important

Resilience in the food business is about adapting without losing identity. Whether it’s dealing with supply chain disruptions, pandemic-related shutdowns, or shifting culinary trends, a strong food entrepreneur must possess the grit to rebuild, rethink, and reemerge stronger. Rebel Foods proved that resilience is not just about survival—it’s about thriving through reinvention.

Staff is the Backbone

A food business isn’t just about food—it’s about people. Those that make a lasting impact are the ones that integrate themselves into the community they serve. When customers feel a personal connection with a brand, they become lifelong advocates. Building a community connection doesn’t necessarily mean longevity alone; it’s about staying authentic to your mission and ensuring that customers feel like they’re part of something bigger. Whether it’s through local sourcing, sustainability efforts, or cultural storytelling, businesses that prioritize people over profits naturally cultivate deep loyalty.

The Indian Coffee House is not just a restaurant chain; it is a movement. Established in the early 20th century and later turned into a worker-owned cooperative, Indian Coffee House has been a silent witness to India’s changing social, cultural, and political landscape. What sets it apart is not just its affordable food or simple ambiance, but its deep-rooted connection with the community.

Involvement of Senses

A great meal may delight the senses, but a truly remarkable food business transcends the act of dining. It orchestrates moments that move beyond taste—moments that touch the heart, evoke nostalgia, and create bonds that last a lifetime. It is not just about the technical precision of a perfectly seared steak or the symmetry of a plated dessert; it is about the silent artistry of an experience carefully crafted, where every interaction leaves an imprint on the guest’s memory.

The precision of detail ensures excellence, the intent to serve builds warmth, innovation drives progress, resilience keeps the business standing, and community connection fosters belonging. The true masters of this industry understand that food is only the medium—the real magic lies in the stories it tells and the emotions it stirs.

What separates the truly exceptional from the ordinary is not found in a recipe but in a philosophy—a deep-rooted belief that hospitality is not a service, but a calling. A well-run food business does not merely satisfy hunger; it leaves behind an echo, a lasting presence in the hearts of those it serves. So, as you step into the world of food entrepreneurship, ask yourself: Are you creating meals, or are you creating meaning? Because the greatest food businesses do not just feed the body—they nourish the soul, one experience at a time.

 

Next Story
How Emotional Intelligence Help Restaurants Create a More Personalised Experience
How Emotional Intelligence Help Restaurants Create a More Personalised Experience
 

In the dynamic world of food and beverage business, especially restaurant business where taste matters the most and the experience lasts longer, the role of emotional intelligence cannot be over ruled. 

Today, restaurants are not just limited to serving a good food and delivering an everlasting experience, it also involves a deeper connection, empathy and an understanding of what they require. And, that’s where Emotional Intelligence enters into the picture by transforming a good service into a wow! Experience.  

What is Emotional Intelligence?

Emotional intelligence refers to the collection and analysis of data on food consumption, preferences, and trends to gain insights into consumer behavior and the food market as a whole.

It encompasses understanding the journey of food from farm to fork, including production methods, supply chain logistics, and sustainability practices. By leveraging technology such as big data analytics and artificial intelligence, Emotional intelligence helps businesses make informed decisions about product development, marketing strategies, and inventory management, ensuring that consumer needs are met efficiently and effectively.

Creating a Personalised Touch

From a warm welcome at the door to the personalised touches throughout dining, every interaction is packed with warmth, attention to details, leaves guest not just feel satisfied but valued in a long run.

“With Emotional intelligence, restaurants can create customized menus based on customer preferences. For instance, by analyzing data from online ordering platforms or loyalty programs, they can identify each customer’s favorite dishes and make menu recommendations tailored to their tastes,” shared Chef Dheeraj Mathur, Cluster Executive Chef, Radisson Blu, Kaushambi, Delhi NCR.

Commenting on the same, Gopichand Cherukuri, Co-Founder, ICB, pointed that, “For centuries food or beverage has always been an emotional need as much as they are functional need. So it's quite important for brands to understand the customer's mood, preferences and what enables them to make certain choices.”

He also mentioned that a recent survey in Bangalore shared that more than 65% of the customers prefer personalization. “We are not just catering to their functional needs, emotional needs are also equally important for them to decide on where to dine, what to consume. So, emotional intelligence plays a vital role, mapped to the data. And the best part is, AI is a great help in this regard. And ICB is working towards this development to delight our customer base,” he further added.

Sharing a similar insight, Aji Nair, CEO, Mirah Hospitality shared, “Prioritising guest preferences is both a science and an art. It is about knowing what the guest wants—even before they do. Restaurants today blend data analysis with a human touch to anticipate preferences. By tracking dining patterns, guest feedback, and emerging food trends, we create menus that resonate with our customers. But beyond data, it’s the art of reading the room—understanding a guest’s body language, mood, or subtle cues—that allows us to personalize their dining experience. The right mix of insights and intuition helps us craft meals that feel both thoughtful and memorable."

Helping Menu Design

Staying ahead of emerging trends, fluctuating consumer needs, and tastes is essential for success. One of the crucial aspects of adapting to this is effective menu planning, which involves creating innovative, appetizing, and visually appealing dishes that cater to a diverse clientele.

“Our commitment to sensory-driven innovation—whether through umami-rich ingredients, natural sweeteners, or immersive tableside finishes - ensures that every dish tells a story and every meal becomes an experience to remember. In a city where food trends evolve rapidly, we stay attuned to local tastes and global influences, creating meaningful connections through food that touches the heart as much as it delights the palate,” pointed Gagandeep Singh Sawhney, Executive Chef & Culinary Centre of Excellence Cuisine Specialist, MEIA Region at Shangri-La Group.

By using the power of real-time analytics, data-driven insights, and artificial intelligence, Emotional intelligence is transforming the way culinary professionals approach menu planning.

"The dining experience extends beyond food—it’s about forging emotional connections. At Hitchki, emotional intelligence is integral to menu development, allowing us to craft offerings that resonate deeply with our guests. By decoding moods, nostalgia triggers, and cultural influences, we design menus that evoke comfort, excitement, and curiosity. Whether it’s curating seasonal specials that spark memories or reinventing flavors to align with evolving preferences, our approach ensures every dish feels both personal and refreshingly innovative,” added Nair.

 

Next Story
Also Worth Reading